I am resident of nj and plan to sell my house and move to penn. Is there additional tax i must incure?

Asked by Howard Kaplan, New Jersey Sun Aug 8, 2010

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Ian A. Wolf, Agent, Morristown, NJ
Sun Aug 8, 2010
Of course, always consult with your tax advisor/attorney. The short answer to your questions is probably. Here is the longer answer. I would recommend not buying anything out of state before you sell the NJ home. Otherwise you risk being taxed as an out of state resident selling a home in NJ and you could pay 2% of your sale price as a tax at closing. If you are just selling in NJ and then not getting a new residence in NJ or moving out of state, you may have to pay a 2% withholding that would ensure any taxes you owe the state would be paid. In theory, if it is found to not be needed you would get it back. These are two different tax scenarios, and that is why you should talk to a tax advisor for further clarification and to see how you would be impacted. For the transfer tax, my favorite site to quickly check what you would owe is http://www.njhometax.com. If you are a senior or disabled you will get a considerable discount and not have to pay too much. Other wise it could be as much as a few grand, so you do what to be mindful of it during negotiations. Hope that helps.
1 vote
Gina Chirico, Agent, Fairfield, NJ
Sun Aug 8, 2010

In New Jersey when selling your home whether moving out of the state or not, you will be required to pay the New Jersey Realty Transfer Fee which will be taken right out of the proceeds at closing. The NJ Realty Transfer Fee is determined by the sales price of the house. You can find a calculator for determining the NJ Realty Transfer Fee here: http://www.realstorynj.com/sellers/realty-transfer-fee-calculator. For more information on the Realty Transfer Fee, please visit my blog: http://activerain.com/blogsview/1437645/the-new-jersey-realt…

Depending on how long you lived in the home, if it was in fact your primary residence, and whether you are single or married will determine capital gains. Section 121 of the Internal Revenue Code,generally allows homeowners to sell real property held (owned) and used (lived in) as their primary residence and exclude from their taxable income up to $250,000 in capital gains per homeowner, and up to $500,000 in capital gains for a married couple filing a joint income tax return. You should check with your accountant because different circumstances could apply to your specific case.

In addition, it is my understanding that at the time of closing if you are moving out of New Jersey, 2% of the proceeds will be withheld to ensure that sellers leaving the State of NJ file their NJ income taxes at the end of the year. Again, I would check with an accountant to see what personal liabilities and/or state withholdings apply.

I hope some of this information helps and I didn't confuse you more because sometimes even we are confused! (lol)

Good luck with selling your home and your relocation to Pennsylvania!

Gina Chirico, Sales Associate
Lattimer Realty
973-715-1158 cell
973-575-6353 ext 17 office
1 vote
Linda Schwarz, Agent, Kendall Park, NJ
Mon Sep 16, 2013

As a NJ seller, at closing you will need to pay a real estate transfer tax. The amount you pay depends on the sales price of your home. For example, if your sales price is $380,000 and you are not over 65, your real estate transfer tax would be $3,023 calculated as follows: $2.90/$500 up to $150,000 ($870); $4.25/$500 in excess of $150,000, but not in excess of $200,000 ($425); $4.80/$500 in excess of $200,000, but not in excess of $550,000 ($1,728).

Hope this helps!

Linda Schwarz, Realtor Associate, Top Producer
Gloria Nilson & Co Real Estate
939 Ridge Rd., Ste. 1A
Monmouth Jct., NJ 08824
(732) 297-2320 - Direct
(732) 422-2277 - Cell
(732) 940-9062 - Fax
linschwarzhome4sale@yahoo.com (preferred e-mail)
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Mon Aug 9, 2010
Check into doing a 1031 exchange and see if this helps you avoid the so called exit tax
Web Reference:  http://www.sjrates.com
0 votes
Fred Glick, Agent, Mountain View, CA
Sun Aug 8, 2010

Since I doubt you will many CPAs on this network, check with your accountant to see what you may or may not have with respect to cap gains in NJ and possible deferments.

Good luck,

Web Reference:  http://fglick.com
0 votes
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